CO129-561-10 Estimates 1938 2-9-1937 - 23-9-1938 — Page 36

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Ceputo CA. 11.

No. 166.

210

53652

36

RECEIVED

A 1938

C. O. REGY

GOVERNMENT HOUSE,

HONG KONG.

1st March, 1938.

بی

Sir,

I have the honour to acknowledge receipt of

q your despatch No.7 of the 12th January, 1938, conveying

your general approval of the estimates for 1938.

2.

In paragraph 3 of that despatch, in discussion

of the proposal to continue financing loan works from revenue pending a further issue of 1934 loan, you have drawn attention to the fact that at the time the estimates were submitted it appeared that at 31st December, 1937, $10,000,000 of the anticipated surplus of $12,000,000 would be advanced in this way and that if the anticipated deficit of $3,000,000 for 1938 were realized this method

of financing could not be continued; in these circumstances you have requested that consideration should be given to

the possibility of making a further issue of the loan. The present financial position is much more

万

favourable than was expected when the estimates for 1938

were framed. It was then impossible to foretell the effect on the Colony's finances of the Sino-Japanese hostilities.

Temporarily the Colony appears to be

profiting by the unfortunate events in China and something in the nature of an artificial war boom is being enjoyed. Although ordinary trade with China is much disturbed, the special war demands and the interruption of cha nnels of

THE RIGHT HONOURABLE

.G.A.ORMSBY-GORE, P.C., M.P.,

&c.,

&C.,

&c.